The squeeze everyone was waiting for?
It just happened.
As $BTC pushed higher, roughly $736M in short positions got wiped — the biggest short liquidation event in months. That kind of move doesn’t appear randomly. It was building.
Funding rates had gone deeply negative, which told me traders were leaning aggressively short. When positioning gets that one-sided, it doesn’t take much to spark a cascade. Once price started moving up, forced liquidations turned into fuel — sell pressure flipped into buy pressure fast.
But here’s what I’m watching carefully.
Derivatives are still crowded. Spot demand? Still relatively thin. That imbalance matters.
Short squeezes can create explosive rallies, but without real spot accumulation behind them, momentum often fades as quickly as it started. A squeeze is leverage unwinding — not automatic trend confirmation.
BTC is trading near ~$69.8K, still well below prior highs. Structurally, this move looks more like positioning reset than full regime shift.
For me, the real confirmation would be: • Strong spot inflows
• Funding stabilizing, not flipping euphoric
• Structure reclaiming higher timeframe levels
Until then, I see volatility — not certainty.
In this market, squeezes create movement.
Liquidity decides direction.
